INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s effective tax rate for the three-month period ended March 31, 2023, was 21.4 percent as compared to 19.7 percent for the three-month period ended March 31, 2022. The effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to state taxes partially offset by the recognition of the U.S. foreign-derived intangible income (FDII) provisions and certain discrete events including excess tax benefits from share-based compensation.

The increase in the effective tax rate was primarily a result of less favorable discrete events recorded in the three month period ended March 31, 2023, as compared to the three month period ended March 31, 2022.